Showing posts with label CAG. Show all posts
Showing posts with label CAG. Show all posts

Friday, January 04, 2013

Please spend!!!

MLAs need to use the funds

India might have 450 million paupers; it has never been a poor nation in the sense of availability of funds. But sadly, it has always been a poor performer when it comes to the efficient allocation of these funds.

The capital city itself is a stark indicator of this unfortunate situation; so one can imagine the issues with the rest of the country. According to a report by CAG that was released in 2006, there were 34 Members of the Legislative Assembly (MLAs) of Delhi in the list of blacklisted MLAs, who hadn’t been able to utilise the funds allocated especially to them for their constituency development under the Assembly Constituency Development Programme (ACDP). The report stated that in the financial year of 2004-05, there were 3 MLAs who didn’t spend even a single penny for development. The remaining spent less than half of the amount that was allocated to them.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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Wednesday, August 01, 2012

Scrutiny-CAG REPORT: B&E ANGLE

In a recent report, CAG highlighted Air India’s wrongs and ways to get it right. Surprisingly, B&E’s analysis a few weeks earlier was fantastically similar!

The first was advocated by CAG too. “The main reasons for low route profitability were the liberal increase in bilateral entitlements, which benefited foreign carriers and the failures of AIL to contain losses (Paras 6.1.3.1 & 6.1.3.1.1). As regards erstwhile IAL: route economics revealed that most services were not meeting cash costs or total costs, both in domestic & international sectors (Para 6.1.2.1).”

As far as the second advice is concerned, CAG complained, “In our view, the potential benefits for the merger would have been far higher, had this been undertaken before finalization of the massive and separate fleet acquisition exercises undertaken by AIL and IAL (Para 4.1)... Substantially enhanced fleet acquisition, in fact, justified AIL to operate a larger number of routes. Even earlier, most routes were incurring losses, and only the Gulf/Middle East and Far East Asia routes made profits till 2005-06. By 2009-10, all routes were loss-making.” Of course, the report missed on the third advice on excess manpower, only adding, “The airline is in a crisis situation. Salary payments and ATF obligations are becoming difficult.” B&E had said: “A base of 6,727 employees is what it should ideally require; not a swelling paycheck for 32,000-odd!” and, “Over the years, AI’s management has blamed losses on escalating fuel prices or intense price wars. Not hard to disbelieve.”

CAG does, however, claim that its “examination was carried out in late 2010 and early 2011”. Trusting that, all one can conclude is that the date of the release was an incredible coincidence [before the CAG report was flashed across news channels, a new issue of B&E was already nearing twilight on the stands]. So is the fact that almost “all” issues covered in both the B&E story and the CAG report are common. There is a conspiracy theory though – 21 days is a long time and besides, B&E first informed the taxpayers about the closet full of skeletons. Taxpayer – now this is a word that had ZERO appearances in CAG’s report. Mr. CAG – we’re pumping our fists this time!




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